“This is the second year of sustained growth in EBITDA with last year’s 35 percent increase in EBITDA to P1.3 billion from P995 million a year before,” RHI said.

EBITDA margin stood at 15 percent, higher than the 11 percent recorded in the same period last year.

Pedro Roxas, RHI chairman, noted the sustained improvement in EBITDA was a result of the long-term initiatives undertaken by the group.

In its sugar business, revenues reached P7.3 billion, 7 percent lower than last year’s P7.8 billion, due to a 15 percent decline in average sugar prices.

RHI said sugar prices were lower than the estimated percentage drop in national sugar prices.

“Despite the reduction in revenues, gross income from the sugar business increased to P1,164 million, 38 percent higher than the P844 million recorded for the same period last year, due principally to improved production volume and efficiency at the plants,” RHI said.

The group’s sugar business milled 3.461 million metric tons of cane (TCM) for the period, up 26 percent from last year’s 2.748 million TCM. It also produced 6.497 million 50-kg (LKg) bags of sugar for the period, surpassing last year’s production of 5.102 million LKg.

“The improved relationship we have with planters and the upgrades that we implemented for the equipment and processes at our plants have paid off,” said Hubert Tubio, RHI president.

“We were able to reduce the overall costs of production, which also alleviated the impact of the soft prices of sugar,” he added.

The ethanol business saw revenues hit P3.6 billion, 14 percent lower than last year’s P4.2 billion, as lower price hit the business. The company managed to keep its volume steady at 70 million liters.

“The price of ethanol is generally linked to the price of sugar and molasses, which are the main feedstock in the production of ethanol,” RHI said.

“Notwithstanding the lower revenues, the ethanol business segment’s gross income improved to P293 million, 28 percent higher than the P229 million reported in the same period last year,” it added.

RHI said the operations of the ethanol business unit were adversely affected by delays due to prolonged periods of enhancement works at the plants in the early part of the year.

“The ethanol unit, however, steered back to profitability toward the end of the period as plant repair and expansion works ended,” it said.

RHI expanded the production capacity of its ethanol business to 82 million liters of ethanol per year.

“We are hopeful that the expanded capacity and improved efficiency of the Group’s ethanol business unit will underpin the continued growth of the business,” Roxas said.

Related News

About Malaya

Malaya Business Insight's weekday sections treat readers to timely articles on shipping, banking, information and technology, automotive and motoring, real estate and property development, travel and tourism and people and sectoral events. Special issues and supplements are designed to enrich current information and data files of readers with pre-selected topics of national and local significance.